Form 6251 - Alternative Minimum Tax - AMT

Alternative minimum tax (AMT) is a tax that was originally designed so that high-income taxpayers who avoided paying regular income tax by using various tax preference items would at least pay some income tax.

Now, with tax rate reductions, a high amount of itemized deductions, or a high number of dependents, it is possible that AMT will apply to a return. The AMT is the difference between the regular tax rate and the calculated alternative minimum tax. The AMT is calculated on Form 6251, reported on IRS Schedule 2 (Form 1040) Line 45, and added to your regular tax.

Alternative minimum tax is reported on the Summary screen and in the Alerts section of the program. From within your TaxAct® return (Online or Desktop):

  1. To access the Summary screen, click Federal and then click Summary in the Federal Quick Q&A Topics menu. On smaller screens, this option will not be available.
  2. To access the Alerts, click the Review. On smaller devices, click in the upper left-hand corner, then select Review.
  3. To review the information on alternative minimum tax on your return:
    1. Click Federal. On smaller devices, click in the upper left-hand corner, then select Federal.
    2. Click Taxes in the middle of the screen to expand the section and then click Alternative minimum tax
    3. The program will proceed with the interview questions for you to enter or review the appropriate information

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